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A mortgage discharge is the legal document a lender registers to remove its charge from a property’s title once the mortgage is paid off or replaced. Without it, the property remains encumbered on title even after the debt is gone; registering the discharge is typically handled by a lawyer or notary as part of closing.
A discharge is the document that formally removes a lender’s registered charge from a property’s title once the mortgage debt is gone. Paying off the balance doesn’t clear the title on its own — the discharge has to be registered separately, typically by a lawyer or notary.
It comes up in a few situations: selling the property, a switch to a new lender, or a refinance that pays out the original charge in full. In each case, the old charge needs to be discharged before or as part of registering the new one.
How straightforward the discharge is depends on how the mortgage was registered: a standard charge is generally simpler to discharge and re-register than a collateral charge, which is one reason the charge type matters when a client is comparing lenders.
Triggered by sale, switch, or refinance: a discharge is registered whenever a mortgage is paid off in full — on sale of the property, a switch to a new lender, or certain refinance structures.
Standard charges discharge more simply: a mortgage registered as a standard charge is generally easier to discharge and re-register with a new lender than a collateral charge.
Fees apply: lenders typically charge a discharge fee, and a lawyer or notary usually handles registering the discharge on title as part of closing.
Who coordinates it: mortgage agents (Ontario, FSRA), submortgage brokers (BC, BCFSA), mortgage associates (Alberta, RECA), and courtiers hypothécaires (Quebec, AMF) confirm discharge timing with the outgoing lender so closing isn’t delayed.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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